Cost-of-living index

The cost-of-living index measures how much it costs to maintain a certain standard of living in one location compared to another or over time. It considers expenses like food, housing, transportation, and other essentials. If the index rises, living becomes more expensive; if it decreases, it becomes cheaper. This helps individuals, governments, and businesses understand economic changes and make informed decisions about wages, policies, and investments. Essentially, it’s a tool to compare how affordable or costly it is to live in different areas or during different periods.